e Providing the basic physical and
resource developmentsnecessary for
economic growth by expanding a
Trust
Territory-wide
construction
program which includes rehabilitating and building roads, airports, and
harbor facilities; and improving and
expanding water, electrical, sanitary,
and other basic utilities.
e Encouraging Micronesians to establish their own business enterprises
by providing them with necessary
technical assistance and long-term
loans. These enterprises include
establishment of cooperatives, small
home industries, expanded production
of
handicraft,
search
for
markets, and instruction in modern
methods of production.
e Providing for capital participation in
economic enterprises which are
otherwise beyond the financial
capacity of local investors, by providing an economic climate which
applicants attempt to secure cred
directly from commercial banksin t|
area, and that only when such assis
ance is not available may they subm
applications to the Board forits co
sideration. Loans are madedirectly,
in the form of a loan guarantee to
commercial bank by the Territon
Government, with the Board setti
aside cash in reserve equivalent to 2§
of the total loan guaranteed.
Loans may be made or guarante
to:
(a) A citizen or resident of
Trust Territory, or a group or assoc
tion of Trust Territory citizens
residents, whom the Board of Dir
tors regards as a suitable borrower.
will allow business, commerce and
(b) Corporations and cooperat
societies authorized to conduct bi
ness in the Territory; citizens or rn
dents of the Territory engaged
agriculture, manufacturing, or co
mercial fishing; improvement ofto
travel facilities, fisheries, large-scale
for industrial purposes which
Board specifically determines to
beneficial, desirable and necessary
the economic development of
Trust Territory and which meets |
or more of the followingcriteria:
industry a profit while providing
productive employment opportunities for Micronesia’s growing
population. Enterprises which may
require such participation include
commercial
transportation
and
tropical agricultural production,
food processing, and other fabricating and manufacturing industries.
Credit Facilities
The Economic Development Loan
Fund is one important device for
stimulating the local economy. The
Loan Fund is administered by a seven-
member Board of Directors, chaired
by the Director of Economic Development.
A general rule established by the
Board of Directors requires that loan
44
ism; and improvementofreal prope
—Creates new employemnt;
—Replaces imports, increases expor
—Reduces consumerprices;
—Provides vitally needed facilities .
services,
During
.
the
year
under
rev
direct loans totaling $115,300 »
made and $164,200 worth of a:
tional loans were guaranteed ¥
commercial banks. At year’s ¢
$23,000 in loans were pending ant
™
Part VI—Economic Advancen